Bybit Releases Q4 Report Highlighting Trends Between Institutional and Retail Investors

The cryptocurrency exchange Bybit recently published its fourth quarter report, providing insights into the investment patterns of its institutional and retail traders. The report compared the allocation of assets between the two groups and shed light on their preferences.

Institutional Traders’ Asset Allocation

According to the report, institutional traders had approximately 45% of their assets invested in stablecoins. The remaining assets were divided into 35% Bitcoin (BTC), 15% Ether (ETH), and only 5% altcoins. Bybit defines altcoins as any digital assets other than Bitcoin, Ether, or stablecoins.

The report suggests that in a bear market, institutional traders tend to prioritize “safer assets” like stablecoins, which could explain their risk-averse asset allocation. However, the allocation of Bitcoin among institutional traders experienced a notable spike in September, setting it apart from other user groups.

The surge in institutional BTC holdings in September correlated with a positive market sentiment towards Bitcoin. Bybit believes this correlation can be attributed to “favorable lawsuit outcomes” and the anticipation of potential approval for a spot BTC ETF by the Securities and Exchange Commission (SEC).

Retail Traders’ Asset Allocation

Bybit’s report revealed that retail traders had the lowest percentage of Bitcoin holdings compared to other user groups. Instead, they had a higher allocation of stablecoins. Although stablecoins still formed a significant portion of institutional portfolios, their holdings started to decline.

Interest from Major Institutions

As the price of Bitcoin continues to rise, major institutions are showing increasing interest in the cryptocurrency. On December 4, Itaú Unibanco, Brazil’s largest bank, reportedly launched a Bitcoin trading service for its clients connected to its investment platform.

Bybit’s user base reached 20 million earlier this year, and the exchange was ranked among the top 10 cryptocurrency exchanges in the world by volume last year.

Overall, Bybit’s Q4 report provides valuable insights into the investment preferences of institutional and retail traders. The allocation of assets, particularly Bitcoin and stablecoins, highlights the risk aversion and changing market sentiments among these user groups.